Leadership Is a More Successful Way in Transferring IMIDRO’s Companies

Leadership Is a More Successful Way in Transferring IMIDRO’s Companies
“Leadership, despite its disadvantages, is a more successful way in transferring IMIDRO’s companies.” Said IMIDRO’s chairman.

According to the Mining Investment Insurance Corporation’s public relations, Vajih-O-Allah Jafari said, in a meeting with the managers of IMIDRO’s companies, “transferring IMIDRO’s companies through leadership follows s. 35 of the Mines Act and is defined through long-term investment.”

“The process was that instead of the Privatization Organization doing the sale and possession process, the companies would be sold to the investors through auctions, and the winner would pay the government the money. In the leadership contract, however, the aim is that both the law and the legal process would be taken into account both in the companies’ transference and their development.”

Pointing out that this way had its problems at the beginning, Mr. Jafari continued: “this method was completed overtime. There are still some problems such as the issuance of permission, and we have had some suggestions to the Ministry of Industry, Mine and Trade, so that it’d be among the investment instructions, and be among the familiar ways of transference in the ministry. These contracts are bound between the investor and the government, and we want the investor not to have any worries for the development throughout the time of the contract. So far the investors who have used this method have been successful, and there were very few cases of dispossession or cancelling the contract.”

8 Billion Dollars of Investment in the Private Section

Pointing out that IMIDRO would do anything it takes to pave the way to guide the private section for investment in the Mine and Mine Industry until it gets the desired result, Mr. Jafari said: “this company has absorbed 8 billion dollars of investment during the last few years, and this number is increasing at the moment. 3 billion dollars of this amount is now in the production phase or is being worked on.”

A Win-Win Situation for both the Private Section and the Government through the New Method of Transference

Emphasizing on the fact that the companies transferred to the leaders have had both benefits for themselves and the government, Mr. Jafari said: “one of the companies transferred by the leadership method was Nakhlak’s lead, and it was supposed to be transferred to the Ministry of Cultural Heritage, Handicrafts and Tourism to become a museum, but now it is working to its highest with the best development and a high range of employment.”

“We’re trying to make the extraction and sale contract to be equivalent to the production license. We would also try to get permissions if there is a need to get them from higher authorities in any step of the way.”

Steps Taken to Expand the Discoveries

Mr. Jafari said that in the discovery development project, after identifying several anomalies, they figured out that there is a possibility to increase the annual digging from 200000 m2 to 500000 m2, “despite such opportunities, we lacked proper machinery, and that is why we formed Paya consortium, with the presence of large mining companies. There was not a professional digger, appropriate for increasing the discovery potentials of the country, and so we decided to start professional digging training (theoretical and practical).”

No Method Has Worked Like the Leadership Method Transferences of the Principle 44

Morteza Azizi, the leader of the Khour and Biabank Potas Company, talked about the development of the country’s Mine and Mining Industries, and that it would need the all the Mine and Mining Industry sections, and said: “forming forums and using Iranian producers, we can move towards increasing the products, and learn from each other’s potentials, develop the production chain and be united in working with government organizations. Transferring government companies to leaders was a great plan, and we have to thank those who made it possible, because this way we had an increase in the capacity and chain production, and protection of government’s possessions, and we have not seen anything like it in the principle 44 transference.”

An Increase in Nakhlak Production, Employment and Development

Pointing out that before Nakhlak Company’s transference in 2016 the amount of soil harvested was 20000 tons a year, and now it’s 40000 a year, Mr. Alireza Sadr, Nakhlak’s Leader, said: “this number will reach 1 million next year. The production of concentrate has also increased from 2000 tons a year (before the transference) to 14000 tons and will reach 20000 tons next year. The number of employees has also increased from 150 to 600 people at the moment. This mine has changed from a traditional to a modern and mechanized mine with long tunnels now and has had huge investments. There were many problems, however, which were solved with the support from Iran Minerals Production and Supplies Company.”

An Increase in Production, More than Promised

Esmail Panahi, the manager of Amin Institute, said: “the annual production of Anguran has gone beyond what was promised, from 100000 tons to 130000 tons, and the production of Esfordi phosphate has also increased from 45000 tons, which was promised, to 60000 tons. The TSP is in hot test stage.”

An Increase in the Production and Employment of Pirbakran Mine

Pointing out that he has been the leader of the limestone mine since 2020, Mr. Ranjbar said: “Before we come, only 34 people worked there, and now there are 89. Our production in 2021, comparing to the year before that, had a 34% increase (from 574000 tons to 770000 tons). In the first 4 months of this year we had a 35% increase as well. The problems we had were solved by Iran Minerals Production and Supplies Company. We still have some problem that we hope IMIDRO would help us get over them.”

Mr. Jafari, the Creator of the New Transference Method

Gholam Reza Nakhaei, the leader of Joghatay Ferrochromium Plant, talked about Mr. Jafari creating this method in the first place and said: “the advantages of this method have not been clarified enough for the society and people need to hear about it. The average production of the Joghatay Company was 5000 tons a year before the transference, and last year it reached 26000 tons. 60% of the products were exported and it brought our country 20 million dollars. The number of people working there in 2017 were 130, which is now 430.”

A Double Increase in Mining Supplies

Ebrahim Jamili also talked about the leadership method being one of the best methods to reduce the government’s management, and said: “after we started working in the Kuchali Shomali thermal coal mine, the discoveries increased the supplies to twice what it was before. We had good cooperation with foreign countries in order to construct our company, and it will soon become one of the country’s best companies. Forming forums in Mine and Mining Industry can increase the cooperation between different sections and protect the collective interests. It could also decrease the negative competition between companies and help explain the actions of investors in parliament and decision-making centers.”

Challenges Ahead

Iman Atighi, the CEO of Gol Gohar company, pointed out the challenges ahead of Mine and Mining Industry, and said: “among the challenges are the customs and product release, short-term exportation bylaws, the low possibility of investments by the banks because of guarantees, etc. we have to domesticize the production of machinery, and where it does not work, we have to import them.”

In this meeting, leaders of other companies also made proposals such as issuing establishment licenses in the name of leading companies, the possibility of using mineral tailings as an incentive for investors, mining and selling licenses as production licenses, taking advantage of appropriate tax exemptions related to different regions, the possibility of paying royalties after the sale and creating a logical basis for receiving government rights.

Sep 19, 2022 12:05
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